To decide which type of insurance adviser you need you should identify the risks to your business.
You should consult:
- An independent financial adviser (IFA) for people-related risks and business-planning issues, such as life assurance, protection, health and business continuity. IFAs also deal with pensions and investments - see know your legal obligations on pensions and pension planning for the self-employed.
- An insurance broker for general and commercial risks, such as motor insurance and employers' liability insurance.
Some firms offer both IFA and broker services but if your adviser does not deal with a particular type of insurance they should be able to direct you to an alternative provider. See how to choose an insurance broker and how to choose an independent financial adviser.
Insurance brokers, advisers and other insurance intermediaries are regulated by the Financial Conduct Authority (FCA) and you should make sure that your adviser has FCA authorisation. Check that an insurance broker is regulated by the FCA.
Always be honest
Honesty is essential in all dealings with insurers. Providing incomplete information or withholding something that is relevant can invalidate a claim, contract and policy. Relevant information is a broadly defined term and if you have any doubt at all regarding the relevance of information you should declare it.
Your adviser can assist in deciding the relevance of information submitted to the insurance company.
How premiums are calculated
Your premiums will be calculated based on the information you give and the history of similar business types. Your premiums can be affected by the claims you have previously made and by the levels of risk attached to people in your employment or to your business and assets.